How big is the Microsoft Activision deal?

The Microsoft Activision deal is valued at $68.7 billion, making it the largest deal in the gaming industry‘s history, and one of the biggest acquisitions in the tech industry. This monumental acquisition signifies a significant milestone for Microsoft, bolstering its position in the gaming market and cementing its status as a major player in the tech world.

Impact and Implications

Overview of the Deal

The acquisition of Activision Blizzard by Microsoft has far-reaching implications for the gaming industry, with the potential to reshape the landscape of cloud gaming and gaming subscriptions. With this deal, Microsoft gains control of iconic game franchises like Call of Duty, Diablo, and Candy Crush, significantly expanding its gaming portfolio.

FAQs

1. What is the Microsoft Activision deal? The Microsoft Activision deal refers to the acquisition of Activision Blizzard by Microsoft for $68.7 billion, announced in January 2022 and completed in October 2023.

2. How much did Microsoft pay for Activision? Microsoft agreed to pay $95 for each share of Activision, valuing the deal at approximately $68.7 billion.

3. Is the Microsoft Activision deal done? Yes, the Microsoft Activision deal has been completed, following approval from regulatory bodies in the United States and the United Kingdom.

4. What is Microsoft’s biggest deal with Activision Blizzard? The $68.7 billion acquisition of Activision Blizzard is Microsoft‘s largest deal to date, surpassing its previous acquisitions in the tech industry.

5. How big is the Microsoft Blizzard deal? The Microsoft Blizzard deal is valued at $68.7 billion, making it the largest acquisition in the gaming industry‘s history.

6. Why is Activision selling to Microsoft? Activision is selling to Microsoft to further improve Microsoft‘s presence in the gaming industry and the metaverse, and to consolidate its position as a leader in cloud gaming.

7. What has Microsoft done with Activision? Microsoft has begun the process of merging Activision with its Xbox division, following the completion of the acquisition.

8. What happens to my Activision stock when Microsoft buys it? Activision stockholders will receive $95 for each share of Activision they owned prior to the close of the deal.

9. How much is EA worth vs Activision? The current market cap of EA is approximately $35 billion, significantly lower than the $68.7 billion valuation of the Microsoft Activision deal.

10. How much is Xbox paying for Activision? Xbox‘s parent company, Microsoft, is paying $68.7 billion for Activision, with the deal expected to bolster Xbox‘s position in the gaming market.

11. Who is against the Microsoft Activision deal? The US Federal Trade Commission (FTC) and Britain’s Competition and Markets Authority initially opposed the deal, citing concerns over competition in the gaming industry.

12. Is the Microsoft Activision deal all cash? The Microsoft Activision deal is an all-cash transaction, with Microsoft agreeing to pay $95 per share for Activision.

13. Why can’t Microsoft buy Activision? Microsoft faced regulatory hurdles in its bid to acquire Activision, with concerns over competition and market dominance in the gaming industry.

14. What is the biggest difference between a merger and an acquisition? A merger occurs when two entities combine to form a new organization, while an acquisition refers to the takeover of one entity by another, as seen in the Microsoft Activision deal.

15. What does it mean when Microsoft buys Activision Blizzard? The acquisition of Activision Blizzard by Microsoft signifies a significant expansion of Microsoft‘s gaming portfolio, with the potential to reshape the gaming industry and solidify Microsoft‘s position as a major player in the tech world.